India and South American bloc Mercosur have announced a plan to expand the trade pact | Today’s news
New Delhi: India and South American trade bloc Mercosur have announced plans to begin talks to expand their existing trade deal, the commerce ministry said on Monday, as New Delhi seeks to diversify export markets and deepen trade ties amid global economic turmoil.
The agreement, which has been in place since June 2009, currently provides India with tariff concessions on 450 tariff items or product categories, while Mercosur offers concessions on 452. Bilateral trade between India and the bloc is set to reach $21 billion in 2025.
Commerce and Industry Minister Piyush Goyal and Uruguayan Foreign Affairs Minister Mario Lubetkin announced the start of the talks, according to a Commerce Ministry statement.
The two sides are “in the process of finalizing terms that will define the scope and structure of a future expanded agreement,” he added.
Expansion of the base
Mercosur includes Brazil, Argentina, Bolivia, Uruguay and Paraguay. The move comes as India seeks to expand its export base, while its strong growth prospects amid global turmoil have prompted countries and trading blocs to deepen economic engagement with Delhi.
In recent years, India has signed several trade agreements with economies including the European Union, the United Kingdom, the United Arab Emirates and Australia. The country remained the world’s fastest-growing major economy from 2021-22, and the International Monetary Fund expects it to retain that status for at least another two years. Its economy grew at a higher-than-expected 7.8% in the June quarter of fiscal year 2027 (Q1FY27), despite external headwinds.
For paperless business
India and Mercosur on Monday separately signed a protocol to facilitate paperless trade and modernize customs procedures.
“This move is expected to facilitate the transition to digital and paperless trade documentation, reduce transaction costs and processing time associated with issuing and verifying certificates of origin, and improve the effectiveness of preferential trade under the existing India-Mercosur Preferential Trade Agreement (PTA),” the commerce ministry said.
The initiative follows the discussions in the India-Mercosur PTA Joint Administrative Committee. At a meeting in November last year, both sides supported updating the agreement to allow the use of digital certificates of origin. The proposal was subsequently adopted by mutual agreement at the fifth meeting of the Joint Administrative Committee on 9 April 2026.
